Chennai: NLC India Limited and National Aluminium Company Limited (NALCO) are set to form a 50:50 joint venture company to develop a 1,080 MW (4×270 MW) thermal captive power plant.
The Board of Directors of NLC India approved the incorporation of the joint venture at its meeting held on September 29, 2026. The proposed company is expected to be named NLC NALCO Power Limited, subject to approval of the Ministry of Corporate Affairs.
The proposed joint venture will operate in the thermal power generation sector and will be incorporated in India.
NLC India and NALCO to Hold Equal Equity
The proposed joint venture will have equal participation from NLC India and NALCO, with each company holding 50% equity.
Key details of the proposed joint venture include:
- Joint venture partners: NLC India Limited and NALCO
- Equity participation: 50:50
- Proposed name: NLC NALCO Power Limited, or another name approved by the Ministry of Corporate Affairs
- Project: Thermal captive power plant
- Total capacity: 1,080 MW
- Configuration: 4 units of 270 MW each
- Development: In phases
- Primary purpose: Meeting NALCO’s captive power requirements
- Sector: Thermal power generation
- Place of incorporation: India
The equity shares in the proposed joint venture will be subscribed for cash at a face value of ₹10 per share.
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1,080 MW Thermal Power Plant to Support NALCO
The proposed 1,080 MW thermal captive power plant will be developed in phases. The project is intended to meet the captive power requirements of NALCO, supporting the company’s power needs for its operations.
The partnership brings together the capabilities of NLC India and NALCO, both public sector enterprises with operations spanning the energy and natural resources sectors.
The project will comprise four 270 MW units, taking the total planned generation capacity to 1,080 MW.
The project will focus on:
- Developing a large-scale captive thermal power facility.
- Meeting NALCO’s power requirements.
- Developing the plant in phases.
- Leveraging the expertise of both public sector enterprises.
JV to Explore Renewable Energy Power Purchase Agreements
In addition to the thermal captive power project, the proposed joint venture will explore options for long-term Power Purchase Agreements (PPAs) to meet NALCO’s renewable energy requirements.
The additional scope will enable the partners to examine longer-term arrangements for securing renewable power for NALCO, subject to applicable approvals and other requirements.
The proposed renewable energy scope includes:
- Exploring long-term renewable energy PPAs.
- Supporting NALCO’s renewable energy requirements.
- Evaluating suitable power procurement options.
- Proceeding subject to statutory and administrative approvals.
DIPAM Clearance Already Conveyed
The proposed joint venture is subject to various statutory and administrative approvals and compliance with applicable DIPAM guidelines.
DIPAM clearance for the proposed joint venture has already been conveyed by the Ministry of Coal through a letter dated September 8, 2026.
The incorporation and subsequent activities of the joint venture will proceed subject to the required regulatory and administrative clearances.
Approval-related details:
- DIPAM clearance conveyed by the Ministry of Coal.
- Clearance letter dated September 8, 2026.
- Further statutory and administrative approvals will be required.
- The JV will comply with applicable DIPAM guidelines.
Strategic Importance of the Joint Venture
The proposed collaboration marks a partnership between two major public sector enterprises for developing additional power generation capacity.
The thermal captive power plant is planned primarily to provide power for NALCO’s requirements, while the proposed exploration of long-term renewable energy PPAs adds a renewable energy component to the partnership.
The collaboration will focus on:
- Developing 1,080 MW of captive thermal power capacity.
- Supporting NALCO’s power requirements.
- Exploring renewable energy procurement through long-term PPAs.
- Combining the capabilities of NLC India and NALCO.
About NLC India Limited
NLC India Limited (NLCIL) is a Navratna public sector enterprise under the Ministry of Coal, Government of India. The company is engaged in lignite mining and power generation, with operations across thermal and renewable energy projects.
About NALCO
National Aluminium Company Limited (NALCO) is a Navratna public sector enterprise under the Ministry of Mines, Government of India. It is engaged in the mining, production and marketing of bauxite, alumina and aluminium, along with related operations.
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